The 25% tariffs on aluminium and steel imports have drawn attention to the growing concerns over bilateral trade between Greece and the United States. Greece’s total exports to the U.S. are projected to reach €2.4 billion in 2024, with the trade balance between the two countries remaining in surplus for another year, thanks to Greek exports of U.S. goods. These figures deserve closer scrutiny.
However, U.S. tariffs on Greek exports may significantly reduce the competitiveness of Greek products due to price hikes, leading to potential sales declines.
WHAT WILL EUROPE DO?
On the other hand, Europe is preparing to respond to the imposition of these tariffs — at least according to statements from European officials. If the tariffs take effect, EU imports from the U.S. are likely to be reduced, especially as U.S. products, subject to additional duties, are expected to face price increases.
Yesterday, the European Commission addressed the potential for U.S. tariffs on European Union steel and aluminium. It stated, “At this stage, we have not received any formal notification regarding the imposition of additional duties on EU products. We will not respond to general announcements without specific details or written clarifications. The EU does not consider the imposition of export duties justified. We will take action to protect the interests of European citizens, businesses, workers, and consumers from unjustified measures.”
The EU generally considers tariffs to be both illegal and economically unjustifiable. They argue that “such measures would be counterproductive, especially given the deep integration of production chains between the EU and U.S., facilitated by transatlantic trade and investment relations. Tariffs are essentially taxes, and by imposing them, the U.S. is taxing its own citizens, raising business costs, and fueling inflation. Additionally, these tariffs increase economic uncertainty and disrupt global market efficiency and integration”.
VIOHALCO’S POSITION
As for the Viohalco group, its exposure to the U.S. market is limited, with its exports to the U.S. in tonnage remaining in the low double digits. The key factor, however, is the final decision on the level of tariffs, which will determine the impact. In the event of tariffs, and depending on their cost, there is a possibility that the company could shift its focus to new markets.
CENERGY’S INVESTMENT IN MARYLAND
Regarding Cenergy’s major investment in Maryland, there is no immediate impact from the tariffs, so the situation remains unaffected for now.
TITAN AND METLEN GROUPS
Executives from Titan and Metlen groups recommend remaining calm at this stage until more clarity is provided regarding the level and duration of the duties. According to information from BnB Daily, scenarios regarding how to handle potential tariffs have already been considered, so both companies are prepared for any eventuality.
MARKET REACTION Investor reactions on the Athens Stock Exchange have been calm, and initial expectations suggest that any market turbulence will be mild and manageable, according to stock market analysts. This is reflected, at least, in the current movements of investors on the Athens Exchange.
Author: Ioanna Dragona
Add to favoritesNo tags for this post.